– You can afford the monthly repayments on your priority debts (such as mortgage, rent and council tax) and your living costs, but are struggling to keep up with your credit cards and loans
– You would like someone to deal with your creditors for you
making one set monthly payment will help you to budget.
However, you need to be sure you understand the impact a DMP will have:
– It may take longer to pay back your debt because you will be paying less each month
your creditors will not necessarily freeze the interest and charges on your debts, so the amount you owe might go down by less than you think
– Your DMP provider might charge you a fee, although there are some free providers you can use so there is no need to pay if you do not want to
– Your creditors might refuse to co-operate or continue to contact you
the DMP may show on your credit record, making it harder for you to get credit in the future.
– If you are unsure about whether this sounds like it is right for you, you might want to think about other options for dealing with your debts.
A DMP will not give you any debt write-off, you will have to pay all the debt back in full.